Mediacom Expands Usage-Based Broadband Plans

Mediacom Communications is expanding the monthly caps for a new, unified usage-based broadband policy for residential high-speed Internet service that is scheduled to take effect Saturday, Sept. 7. (Editorial note: This story originally referenced an incorrect start date of November 7.)

Among the changes is the addition of a monthly consumption cap for Mediacom’s 105 Mbps DOCSIS 3.0 offerings before overage fees are applied. By tier, here’s the rundown of the new policy and how it compares to the previous one:

Ultra Plus 3T (105 Mbps): A new tier that debuts with a monthly cap of 3000 GB

Mediacom confirmed in early August that it would put all its residential broadband customers on the same usage-based plan by September 7. Before the shift, existing customers have been on a different excessive use policy that capped monthly usage at 250 GB and urged them to consider a commercial tier if they exceeded that threshold. All of those customers are transitioning to the new policy.

Under the unified plan, customers can purchase additional blocks of 50 GB for $10 when they exceed their soft monthly consumption caps.

The new Ultra Plus 3T offers the same speeds as Ultra Plus, but it’s tailored for the most powerful of power users. “If you are a consistently heavy bandwidth user, it would be a cheaper monthly option than paying for overages,” company Mediacom spokesman Thomas Larsen explained via email. The retail rate for the new Ultra 3T tier is $149.95 per month, versus $99.95 per month for the original 105-Meg service, he said. Some customers on promotional rates might be paying less, however.

“Our philosophy is that customers who pay for a higher level of service deserve faster speeds and larger monthly usage allowances,” Larson said in a statement. “We believe these updated monthly usage allowances add more value to our fastest Internet products, and help more clearly differentiate the various levels of residential Internet service we offer.”

In an email exchange in August, Larson said most of Mediacom’s customers – about 97% -- don’t reach their monthly caps and that the overage fees are “not a significant revenue source for us.”